An Empirical Study On The Impact Of Combination Of Industry And Finance On Enterprise Performance

The real economy is the capital for China’s development,and the manufacturing industry is the foundation of the real economy.The outline of the 14 th Five Year Plan points out that enhancing the competitive advantage of the manufacturing industry and promoting high-quality development of the manufacturing industry.China’s manufacturing industry has made tremendous achievements,while the international and domestic development environment is becoming more complex and ever-changing.The domestic economy is declining,the effective demand of residents is insufficient,the financing of manufacturing industry is increasingly difficult,the aging population has weakened the competitive advantage of low-cost labor,and the cost of enterprises is rising;The ongoing regional conflicts and trade wars internationally have led to a significant reduction in international orders in the manufacturing industry.The uncertain market environment has suppressed the willingness of enterprises to invest and reduced their investment efficiency.China’s manufacturing industry is constantly actively exploring new development models.With the continuous improvement of China’s financial market,more and more manufacturing enterprises are entering the financial field to enhance their competitiveness.There have been many studies on whether the entry of manufacturing into the financial field can improve corporate performance,enhance the competitiveness of manufacturing enterprises,and promote the development of the real economy.Different scholars use different performance variables to study,and the research methods used are also diverse,resulting in different research conclusions.The combination of industry and finance in line with the enterprise development strategy can promote the rapid development of enterprises,but blind pursuit of the number of industry and finance combination may lead to economic disequilibrium and lead to economic crisis caused by disorderly expansion of capital.Under the policy background of strictly preventing economic disequilibrium and disequilibrium,further discussion on this issue still has important practical significance.This article uses the net profit of manufacturing enterprises as a representative of enterprise performance,and analyzes the impact of industry finance integration on enterprise performance through theoretical and empirical analysis.The theoretical analysis refers to the current literature,and introduces the mode,influence and development status of the combination of industry and finance;Empirical analysis takes manufacturing listed companies from 2009 to 2020 as research samples to explore the effectiveness of industry finance integration in the manufacturing industry from the perspective of net profit.Empirical evidence shows that:(1)China’s manufacturing listed companies’ participation in financial institutions can improve corporate performance,and the performance improvement is positively correlated with the proportion of bank shares held.This indicates that the deeper the integration of manufacturing and banking industry and finance,the more it can improve the performance of manufacturing enterprises;(2)Participating in other financial institutions by manufacturing enterprises can improve corporate performance more than participating in banks,as other financial institutions can enhance the direct financing ability,risk resistance ability,and synergy ability of manufacturing enterprises;(3)The participation of listed manufacturing companies in financial institutions affects the financing constraints and total factor productivity of enterprises.The integration of industry and finance in manufacturing enterprises alleviates financing constraints,improves total factor productivity,and ultimately improves enterprise performance;(4)The geographical location and regional marketization level of manufacturing enterprises affect the effectiveness of industry finance integration.In the eastern region and regions with high marketization level,the integration of manufacturing industry finance is more effective;(5)Manufacturing enterprises with a high proportion of institutional investors’ shareholding have a better effect on the integration of industry and finance,as institutional investors can constrain corporate behavior and prevent executives from harming corporate interests.It is worth mentioning that the integration of industry and finance is a complex issue,and its impact is also very complex.At the micro level,it can affect enterprise operations,and at the macro level,it may lead to a crisis of economic detachment from reality to emptiness.It is necessary to dialectically view the integration of industry and finance.The integration of industry and finance has a positive effect,and its potential risks cannot be ignored.The integration of industry and finance should be strictly controlled under national policy supervision.